We’re back with another one, and this week it’s Praemium (PPS)!
The ASX 200 hasn’t been the most exciting ride with global markets on a decline seeing the ASX follow suit. In times like these our Hot Stocks haven’t been performing to the best of their potential, however they have seen stronger moves than most and it’s best to tread carefully and adjust trading strategies to better cater to stockpicking in a hard market.
With Praemium (PPS), it’s our pick this week for a few strong reasons. On the fundamental aspect, recent growth both domestically and overseas has been strong, and we expect another positive update in April. We are picking this story as well as it has had a significant pullback on the back of recent market volatility. The Praemium brand is becoming ever more popular with development and evolution of the SMSF and other functionalities.
On the technical front, after going on a recent tear and reaching highs of 85.5c PPS has had a solid pullback breaking the 20 day moving average on a weekly chart. Right now it is holding right on the 40 day moving average @ 59c. If good news is on the horizon there is plenty of blue sky between here and the recent highs!
In case you didn’t know, Praemium is an Australian/UK financial technology company specialising in creating platforms that are used by financial advisers for reporting and investments. Recent report on the half year was phenomenal with revenue up 25% to $20.5M and profit up 87% to $3.3M.